Bankruptcies among Japanese companies in business for more than 100 years are rising sharply. There were approximately 150 cases in 2024, and the number is forecast to exceed 160 in 2025, mainly affecting traditional sectors such as retail, manufacturing, and accommodation and food services.
The number of bankruptcies among companies founded 100 years or more ago that have continued operating over the long term is trending upward. According to a survey by Teikoku Databank, more than 46,000 companies had been in business for 100 years or more as of the end of last year, accounting for more than 40% of comparable companies worldwide.
Rising costs, a shortage of personnel, and the difficulty of finding successors are cited as factors threatening the survival of these long-established companies. In particular, population aging in regional areas is leading to market contraction. The case of Kumagai Ironworks illustrates the severity of the shortage of successors, with the transfer of management to a 10th-generation successor proving difficult.
The government is strengthening support measures such as assistance for business succession, inheritance-tax exemptions, and reforms to merger and acquisition procedures, while also promoting the restructuring of regional companies through the use of search funds. The transfer of businesses by small and medium-sized enterprises to third parties reportedly reached approximately 2,200 cases last fiscal year.
Macroeconomic factors are also weighing on the profitability of long-established companies, with the stronger yen, higher prices, and interest-rate trends casting a shadow over their earnings. Government support measures may help sustain companies that have operated for many years, and the specific effects of this support will be watched in future updates.